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April 3, 2014

How Do Traffic Tickets Affect Auto Insurance Rates

Traffic TicketsAre you familiar with how insurance companies work? They agree to absorb the cost of unforeseen incidents in return for a monthly premium, which is calculated based on how high the risk is of them having to pay for a claim. The higher your risk, the higher your premium.

Traffic tickets are a sign of reckless driving and, as such, are a good measure of the risk you pose on the road. While different insurance companies have different ways of calculating a premium, you can generally expect to pay more for car insurance if you collect several tickets in a relatively short period of time (usually within one to three years). For instance, some insurers may temporarily increase your premium after receiving a ticket and restore it if no more infractions occur, some insurers will waive a single ticket from affecting your policy if your record is otherwise clean and some insurers will allow you to keep your lower premium if you take a defensive driving course after receiving a ticket.

However, the ticket itself isn’t the only factor that matters. Insurance companies also look at how much you were exceeding the speed limit when you were ticketed. A driver who was speeding by five miles is likely to not be affected by hiked premiums as much as a driver who was driving 15 or 20 miles over the speed limit.

Some people falsely believe that receiving a ticket in another state will not affect their auto insurance. But insurance companies have access to a central database that links all US states, which may result in points being added to your driving record no matter where you’re ticketed.

The best way to avoid raised car insurance rates due to a traffic ticket is to simply drive within traffic laws. Obey speed limits, traffic signals, stop signs and all other laws and regulations that are in place for your safety. Not only is it the smart thing to do, it’s also the economical thing to do!

Get a free quote today. Call Cloverleaf Insurance at 800-530-5822 for more information on Missouri auto insurance.

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